"It gets in the way because you study the theory of how to do a business. You understand all the language, the fancy talk, and in the end what you don't get is street smarts because you're busy in the classroom."

Stepping outside the confines of a classroom and getting real, hands-on experience can be much more valuable than an expensive degree, she says.

"Most of my very successful entrepreneurs, myself included, cannot read a financial statement. We don't know a thing about numbers," Corcoran told Keene and Sterns. "But what we're very good at is thinking on our feet and sizing up people. And what do you build a business on in the end? It's people."

When looking for entrepreneurs to invest in on "Shark Tank," Corcoran does not scan for pedigree; she looks for "plain street smarts" and those who are able to jump over obstacles and not feel sorry for themselves, she told Bloomberg.

However, business school is not completely useless and can benefit a certain type of person, she says, like those working for large corporations who can use the credential to wield power and get promotions.

But if you're committed to the entrepreneurial path, you may want to drop the idea of business school and get to work.

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See Also:

Why Barbara Corcoran Never Invests In Rich KidsIf you want to be rich, don't get an MBAOne of the only ways to get really, really rich

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